An Increase in the Demand for American-Made Goods Will

question 94

Multiple Choice

An increase in the demand for American-made goods will

• A)increase the supply of dollars on the foreign exchange market.
• B)decrease the supply of dollars on the foreign exchange market.
• C)increase the demand for dollars on the foreign exchange market.
• D)decrease the demand for dollars on the foreign exchange market.

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Definitions:

National Output

National Output is the total value of all goods and services produced by an economy over a specific period, typically measured as GDP.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Employment

The condition of having paid work, or the relationship between an employer and an employee where the employee provides labor in exchange for compensation.

Positive Economics

The branch of economics that focuses on describing and explaining economic phenomena as it actually exists.